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Given the following regression model: Pi=0.8 Current Ratio+ 0.4 (Gross profit/...
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Given the following regression model:
Pi=0.8 Current Ratio+ 0.4 (Gross profit/Total assets)+0.5(Equity/Debt)
Where Pi is the probability of repayment. The balance data of ABC Ltd. is shown in the following table.
Current assets | $150,000 |
Non current assets | $400,000 |
Total assets | $550,000 |
Equity | $190,000 |
Current liabilities | $250,000 |
Book value of liabilities | $360,000 |
Sales revenue | $1,000,000 |
Gross income | $15,000 |
EBIT | $250,000 |
What is the probability of default of this company?
0%
0%
0%
0%
100%